approved under section 106 (except that initial appointments to the Council may consist of representatives of units or combinations of units of general local government described in clauses (2), (3), and (4) of section 102(a) and of any prime sponsor designated under section 102 (c) which have indicated an intention to submit a plan for approval under section 106), who shall be designated by the chief executive officer or officers of the unit or units of government of which such prime sponsor is composed, with the number of representatives of each prime sponsor proportionate to the percentage of the total population of the State served by such prime sponsor; and

(ii) one representative each of the State Board of Vocational Education and the public employment service of such State.

(B) select a staff director and such other personnel as it feels necessary to carry out its function under this title, in such a manner as it shall determine by majority vote, and be authorized to provide for services to the Council either directly or through contracts with public or private institutions, agencies, or organizations; and

(C) meet at such times and in such places as it deems necessary.

(b) The Council shall

(1) review the plans of each prime sponsor and the plans of State agencies for the provision of services to such prime sponsors, and make recommendations to such prime sponsors and agencies for the more effective coordination of efforts to meet the overall manpower needs of the State;

(2) continuously monitor the operation of programs conducted by each prime sponsor, and the availability, responsiveness, and adequacy of State services, and make recommendations to the prime sponsors, to agencies providing manpower services, and to the Governor and the general public with respect to ways to improve the effectiveness of such programs or services in fulfilling the purposes of this Act;

(3) make an annual report to the Governor which shall be a public document, and issue such other studies, reports, or documents as it deems advisable to assist price sponsors or to otherwise help carry out the purpose of this Act.

APPROVAL OF PLANS

SEC. 106. (a) The Secretary shall not approve a comprehensive manpower plan or any amendment thereto until he determines that it meets the requirements of section 103, and in the case of a State plan section 104, and that the plan was submitted to, and an opportunity to comment thereon provided, the Governor of the State and appropriate officials in units of general local government of the area to be served.

(b) (1) The Secretary shall not finally disapprove any comprehensive manpower plan submitted under this title, or any modifications thereof, without first affording the prime sponsor submitting the plan reasonable notice and opportunity for a hearing.

(2) If the Secretary receives a formal allegation from an affected unit of general local government that a prime sponsor has changed its comprehensive manpower plan so that it no longer complies with section 103 or that in the administration of the plan there is a failure to comply substantially with any such provision, with any provision of the plan, or with any requirements of section 403 or 404, he shall, and, if he receives such an allegation from any other interested person, he may, after due notice and opportunity for a hearing to the prime sponsor, determine whether the allegation is true. If he determines such an allegation to be true, the Secretary shall notify the prime sponsor that no further payments will be made to the prime sponsor under the plan (or, in his discretion, that further payments will be limited to programs under or portions of the plan not affected by such failure). until he is satisfied that there will no longer be any failure to comply. Until he is so satisfied, the Secretary shall make no further payments to such sponsor under the plan (or shall limit payments to programs under the plan not affected by the failure).

JUDICIAL REVIEW

SEC. 107. (a) If any prime sponsor is dissatisfied with the Secretary's final action with respect to the approval of its comprehensive manpower plan submitted under section 103 or section 104 or with his final action under section 106. such prime sponsor may, within sixty days after notice of such action, file with the United States court of appeals for the circuit in which the prime sponsor is located a petition for review of that action. A copy of the petition shall

be forthwith transmitted by the clerk of the court to the Secretary. Thereupon the Secretary shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of title 28, United States Code.

(b) The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Secretary to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify his previous action, and shall certify to the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence. (c) The court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code.

AUTHORITY OF SECRETARY TO PROVIDE SERVICES

SEC. 108. In any area of a State which has not qualified as a prime sponsor and for which no other prime sponsor has qualified under paragraph (2), (3), or (4) of section 102 (a) or has been designated by the Secretary under section 102 (c) or where the Secretary has taken an action under subsection (b) (2) of section 106 which results in such services not being provided in such area, the Secretary is authorized (out of the funds allotted to such State under section 504 (a)) to provide directly the services authorized under this Act, and he may utilize any unit (or combination of units) of general local government, and any other public and private agencies, institutions, and organizations, in providing such services.

ALLOWANCES

SEC. 109. Weekly allowances for individuals receiving services under this title shall be at a rate prescribed by the Secretary which, when added to amounts received by the trainee in the form of wages or unemployment compensation payments, shall equal the minimum wage for a work week of forty hours under section 6(a)(1) of the Fair Labor Standards Act of 1938, or, if higher, under the applicable State minimum wage law, or, where the trainee is being trained for particular employment, at a rate equal to 80 per centum of the weekly wage for such employment, whichever is greater. Trainees receiving public assistance or whose needs or income are taken into account in determining such public assistance payments to others, shall receive an incentive allowance of $30 per week. Such allowance shall be disregarded in determining the amount of public assistance payments under Federal or federally assisted public assistance programs. In prescribing allowances, the prime sponsor shall, in accordance with regulations prescribed by the Secretary, allow additional sums for special circumstances such as exceptional expenses incurred by trainees, including but not limited to meal and travel allowances. or he may reduce such allowances by an amount reflecting the fair value of meals. lodging, or other necessaries furnished to the trainee. The prime sponsor shall take such action as may be necessary to insure that such persons receive no allowances with respect to periods during which they are failing to participate in such programs, training, or instruction as prescribed herein without good cause. Notwithstanding the preceding provisions of this subsection, the prime sponsor shall, in accordance with such regulations as the Secretary shall prescribe, make such adjustments as he deems appropriate in allowance which would otherwise be payable under this title, including but not limited to adjustments which take into account the amount of time per week spent by the individual participating in such programs and adjustments to reflect the special economic circumstances which exist in the area in which the program is to be carried on. Allowances shall not be paid for any course of training having a duration in excess of one hundred and four weeks.

SUPPLEMENTARY VOCATIONAL AND EDUCATION ASSISTANCE

SEC. 110. (a) The Secretary is authorized to make grants to State vocational education boards to assist them to provide needed vocational education services in areas served by local prime sponsors as defined in section 102(a) (2), (3), or (4), or designated under section 102 (c).

(b) All of the sums available to carry out this section shall be allotted among the States in the manner provided for allotting funds under section 504.

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be forthwith transmitted by the clerk of the court to the Secretary. Thereupon the Secretary shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of title 28, United States Code.

(b) The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Secretary to take further evidence, and the Secretary may thereupon make new or modified findings of fact and may modify his previous action, and shall certify to the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence. (c) The court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code.

AUTHORITY OF SECRETARY TO PROVIDE SERVICES

SEC. 108. In any area of a State which has not qualified as a prime sponsor and for which no other prime sponsor has qualified under paragraph (2), (3), or (4) of section 102 (a) or has been designated by the Secretary under section 102 (c) or where the Secretary has taken an action under subsection (b) (2) of section 106 which results in such services not being provided in such area, the Secretary is authorized (out of the funds allotted to such State under section 504(a)) to provide directly the services authorized under this Act, and he may utilize any unit (or combination of units) of general local government, and any other public and private agencies, institutions, and organizations, in providing such services.

ALLOWANCES

SEC. 109. Weekly allowances for individuals receiving services under this title shall be at a rate prescribed by the Secretary which, when added to amounts received by the trainee in the form of wages or unemployment compensation payments, shall equal the minimum wage for a work week of forty hours under section 6(a)(1) of the Fair Labor Standards Act of 1938, or, if higher, under the applicable State minimum wage law, or, where the trainee is being trained for particular employment, at a rate equal to 80 per centum of the weekly wage for such employment, whichever is greater. Trainees receiving public assistance or whose needs or income are taken into account in determining such public assistance payments to others, shall receive an incentive allowance of $30 per week. Such allowance shall be disregarded in determining the amount of public assistance payments under Federal or federally assisted public assistance programs. In prescribing allowances, the prime sponsor shall, in accordance with regulations prescribed by the Secretary, allow additional sums for special circumstances such as exceptional expenses incurred by trainees, including but not limited to meal and travel allowances, or he may reduce such allowances by an amount reflecting the fair value of meals lodging, or other necessaries furnished to the trainee. The prime sponsor shall take such action as may be necessary to insure that such persons receive no allowances with respect to periods during which they are failing to participate in such programs, training, or instruction as prescribed herein without good cause. Notwithstanding the preceding provisions of this subsection, the prime sponsor shall, in accordance with such regulations as the Secretary shall prescribe, make such adjustments as he deems appropriate in allowance which would otherwise be payable under this title, including but not limited to adjustments which take into account the amount of time per week spent by the individual participating in such programs and adjustments to reflect the special economic circumstances which exist in the area in which the program is to be carried on. Allowances shall not be paid for any course of training having a duration in excess of one hundred and four weeks.

SUPPLEMENTARY VOCATIONAL AND EDUCATION ASSISTANCE

SEC. 110. (a) The Secretary is authorized to make grants to State vocational education boards to assist them to provide needed vocational education services in areas served by local prime sponsors as defined in section 102(a) (2), (3), or (4), or designated under section 102 (c).

(b) All of the sums available to carry out this section shall be allotted among the States in the manner provided for allotting funds under section 504.

(c) Funds available to State vocational education boards under this section shall be used only for providing vocational education to participants in programs under this title in accordance with an agreement between the State vocational education board and the local prime sponsor.

TITLE II-PUBLIC EMPLOYMENT PROGRAMS

STATEMENT OF PURPOSE

SEC. 201. It is the purpose of this title to provide unemployed persons with transitional employment in jobs providing needed public services in areas of substantial unemployment and, wherever feasible, related training and manpower services to enable such persons to move into employment or training not supported under this title.

FINANCIAL ASSISTANCE

SEC. 202. (a) The Secretary of Labor shall enter into arrangements with eligible applicants in accordance with the provisions of this title in order to make financial assistance available in areas of substantial unemployment for the purposes of providing transitional employment for unemployed persons in jobs providing needed public services, and training and manpower services related to such employment which are otherwise unavailable, and enabling such persons to move into employment or training not supported under this title.

(b) Of the funds appropriated pursuant to this title which are used by an eligible applicant for public employment programs, not less than 90 per centum shall be expended only for wages and employment benefits to persons employed in public service jobs pursuant to this title.

ELIGIBLE APPLICANTS

SEC. 203. (a) Financial assistance under this title may be provided by the Secretary only pursuant to applications submitted by eligible applicants which shall be

(1) prime sponsors qualified under title I; or

(2) Indian tribes on Federal or State reservations and which include areas of substantial unemployment.

(b) For the purpose of this section "areas of substantial unemployment" means any area of sufficient size and scope to sustain a public service employment program and which has a rate of unemployment equal to or in excess of 7 per centum for three consecutive months as determined by the Secretary. Determinations concerning the rate of unemployment shall be made by the Secretary at least once each fiscal year.

(c) Whenever the Secretary makes any determination required by this section, he shall promptly notify the Congress and shall publish such determination in the Federal Register.

APPLICATIONS

SEC. 204. (a) Financial assistance under this title may be provided by the Secretary for any fiscal year only pursuant to an application which is submitted by an eligible applicant and which is approved by the Secretary in accordance with the provisions of this title. Any such application shall set forth a public service employment program designed to provide employment for unemployed persons residing in areas of substantial unemployment in jobs providing needed public services and, where appropriate, training and manpower services related to such employment which are otherwise unavailable, and to enable such persons to move into employment or training not supported under this title.

(b) An application for financial assistance for a public service employment program under this title shall include provisions setting forth

(1) assurances that the activities and services for which assistance is sought under this title will be administered by or under the supervision of the applicant. identifying any agency or institution designated to carry out such activities or services under such supervision;

(2) a description of the area to be served by such programs, and a plan for effectively serving on an equitable basis the significant segments of the population to be served, including data indicating the number of potential eligible participants and their income and employment status;